Crosstex Energy LP has completed two projects aimed at getting shale oil and condensate to higher paying markets.
In the Utica Shale region, the partnership has re-activated its Black Run rail loading terminal in Frazeysburg, OH, on the Ohio Central Railroad (OHCR), allowing the export of light oil condensate production. And in southern Louisiana, Crosstex finished Phase II of the expansion of its Riverside facility on the Mississippi River.
The Black Run facility is a 20-car rail rack with tracking gangways designed to top load multiple products, including light oil condensate and various grades of crude oil, at a rate of 24,000 b/d. The terminal is the first facility to move light oil condensate out of the region to premium-priced refinery and petrochemical markets, Crosstex said.
"The re-activation of our Black Run rail facility enables us to offer producer customers in the Utica Shale an immediate midstream solution to export their products to out-of-region markets to maximize value for our customers," said Crosstex Energy Inc. CEO Barry Davis.
The OHCR is a 70-mile short line freight railroad that interchanges with the Columbus and Ohio River Railroad, CSX Transportation, Norfolk Southern, Ohio Southern Railroad and Wheeling and Lake Erie Railway. The Black Run terminal, which is adjacent to the partnership's oil gathering pipeline, will leverage the existing tankage and piping, as well as the capabilities of its truck fleet in the Ohio River Valley.
In Louisiana, Riverside capacity to transload crude oil from railcars to the partnership's barge facility has been increased to 15,000 b/d. The facility offers discounted crude oil access to the premium-priced Louisiana market. Phase II additions include a 100,000 b/d above-ground crude oil storage tank, a rail spur with a 26-spot crude railcar unloading rack, and a crude offloading facility with pumps and metering as well as a truck unloading bay. Riverside also was modified so that sour crude can be unloaded in addition to sweet crude.
"We expect Riverside Phase II to enhance our product diversity and fee-based margin," Davis said.